I will be very interested to see what the effect this will have on the uptake of Solar PV in Victoria. The argument of the state government that the changes to a lower FiT enables both equity to all Victorian's and encourages investment in larger systems is nonsense.
Householders who own their roofs and have a solar system feeding in electricity to the grid are directly leading to reduced peak electricity costs ( "Who's afraid of solar PV - The Conversation) and reducing the need for costly new power stations, thus saving $$ for those renting or otherwise unable to generate their own power. As Environment Victoria says on its website "Importantly the feed-in tariff in Germany has actually led to lower wholesale electricity prices as it has reduced peak power demands."
Householders who install a PV system and generate electricity to feed in to the grid are positively discriminated from installing bigger systems - who would make that extra investment when the extra power fed back is not earning the same as the amount used inside the house itself?
To me this is another example of big,established, polluting businesses having more "power" over governments than we, the citizens! Exactly what is expected of a Liberal Party & their business at all cost ideology.
At the same time the Federal Government has broken off negotiating with owners of the oldest and dirtiest brown coal power stations in Victoria, such as Hazelwood, and elsewhere. Initially the Federal government was going to buy off these stations to close them. However, no agreement could be negotiated. The Age is scathing in its analysis saying "According to Frontier Economics, it means the generators are between $400 million and $1 billion better off than if there was no carbon tax"., So is the ABC.
Meaning of course that these stations had already negotiated unfair compensation with the carbon tax and would have got more if they were closed early. So although this decision has saved us, the taxpayer money, the Federal Government has again shot itself in the foot with its voter base!
So Australia will have 2 choices the next Federal election - a running scared, changeable Labor Party which is scared of the Greens, the companies, the Liberal Party and a "lets give everything to business" Liberal Party who will "levy" the people to pay for carbon reduction incentives by big business.
So there is no choice at all!!!!
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Greenstone Girl